Stanley Druckenmiller, the chief of New York-based investment firm Duquesne Capital, oversees a 13F portfolio at his hedge fund that was worth close to $4.5 billion at the end of the fourth quarter of 2025. Druckenmiller, whose net worth is close to $8 billion, recently sat down for a conversation with Iliana Bouzali, Global Head of Derivatives Distribution and Structuring at Morgan Stanley. During this interview, he discussed his evolving investment philosophy, the role of instinct versus analysis, and his current market positioning. Druckenmiller emphasized that extreme success in markets often came from a “narrow form of intelligence” and the ability to pull the trigger on high-conviction ideas, even before all the data is in.
READ MORE: 15 Best Stocks to Buy According to Billionaire Ray Dalio.
Looking ahead, Druckenmiller said he was shifting away from the AI-heavy portfolio that drove his returns over the last three years. He said he expected a strong US economy driven by government stimulus and a Fed that was “probably going to cut.” Outlining his views on the dollar and commodities, he noted that he was “bearish on the US dollar… mainly because foreigners are way, way overloaded in dollars. He added that he was also long on copper, mainly because, “There’s no supply coming on… very tight for the next 8 years.” The Billionaire also outlined why he was shorting bonds, noting it was a hedge against growth-driven inflation. “I don’t necessarily expect to make money short bonds… but it allows me to hold the other assets I mentioned,” he said.
READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Stan Druckenmiller
Our Methodology
To compile our list of Billionaire Stan Druckenmiller’s small and mid-cap stock picks with huge upside potential, we reviewed the latest 13F filings of Duquesne Capital. Next, we focused on the top stocks in his portfolio that are in the mid and small cap range. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Billionaire Stan Druckenmiller’s Small and Mid-Cap Stock Picks with Huge Upside Potential
10. Entegris, Inc. (NASDAQ:ENTG)
Duquesne Capital’s Stake: $71 Million
Duquesne Capital has disclosed a stake in Entegris, Inc. (NASDAQ:ENTG) stock in three filings over the past four years. The first of these was disclosed in the fourth quarter of 2022. It comprised 55,000 shares and was sold off within months. The second was revealed in filings for the second quarter of 2025. This comprised 1.6 million shares and was sold before the end of the third quarter of 2025. A new position was opened in filings for the fourth quarter of 2025. This holding comprises just under 850,000 shares.
Hedge funds are piling into Entegris, Inc. (NASDAQ:ENTG) because it is one of the few companies providing the materials integrity necessary for the next generation of chips. As chipmakers transition to 2nm and 3nm nodes for AI processors, the tolerance for contamination drops to zero. Entegris dominates the market for liquid filtration and high-purity chemicals required for these processes. Institutional investors also often reward companies that fix their balance sheets. Hedge funds have noted Entegris’s aggressive debt reduction plan. In 2025, the company generated $404 million in free cash flow. Management has committed to reducing its net leverage to below 3.5x by the end of 2026.
9. Alcoa Corporation (NYSE:AA)
Duquesne Capital’s Stake: $73 Million
Alcoa Corporation (NYSE:AA) has made intermittent appearances in the 13F portfolio of Duquesne Capital. The fund first disclosed a stake in the company in the fourth quarter of 2016. This holding comprised 1.2 million shares. The position was improved to nearly 1.4 million shares in the next quarter but sold off completely within months of that disclosure. A new position, comprising 1.1 million shares, was opened in late 2020 and sold off in early 2021. Filings for the fourth quarter of 2025 show that the fund has once again made a bet on the company, buying almost 1.4 million shares.
Alcoa Corporation (NYSE:AA) has started grabbing Wall Street attention in light of recent geopolitical tensions. Hedge funds are treating aluminum as a primary geopolitical hedge in the present environment. In late March 2026, strikes on major Persian Gulf aluminum smelters triggered a massive global supply tightening. Aluminum prices spiked as Middle East production went offline, and Alcoa—as a major North American producer—has been a primary beneficiary. Institutional investors view Alcoa as a safe haven supplier for Western industries, automotive and aerospace, that are moving away from Middle Eastern and Russian dependencies. The finances of the firm also remain strong. For Q4 2025, Alcoa reported adjusted EPS of $1.26, crushing analyst estimates of $0.93 by over 35%. Full-year 2025 adjusted net income rose to $1 billion, up from just $296 million in 2024.
8. Cogent Biosciences, Inc. (NASDAQ:COGT)
Duquesne Capital’s Stake: $79 Million
Cogent Biosciences, Inc. (NASDAQ:COGT) is a relatively recent addition to the 13F portfolio of Duquesne Capital. The fund first disclosed a stake in the company in the third quarter of 2025. This position comprised just over a million shares. Filings for the fourth quarter of 2025 show that the fund has more than doubled this holding, upping it to more than 2.2 million shares. Cogent is a clinical-stage biotechnology firm focused on developing precision therapies for genetically defined diseases. A lead product candidate for the firm includes bezuclastinib (CGT9486), a selective tyrosine kinase inhibitor in Phase 3 trial designed to target mutations within the KIT receptor tyrosine kinase.
Hedge funds are betting on a valuation re-rating of Cogent Biosciences, Inc. (NASDAQ:COGT) stock in light of three critical regulatory milestones that the company has achieved. On March 16, 2026, the FDA officially accepted the New Drug Application (NDA) for bezuclastinib based on the pivotal SUMMIT trial. On April 1, Cogent submitted a second NDA for GIST under the FDA’s Real-Time Oncology Review (RTOR) program, which significantly accelerates the approval timeline. The FDA granted this status in late January 2026, signaling that bezuclastinib is viewed as a potentially superior treatment to current standards of care. Institutional investors are focused on the deepening clinical benefit revealed in the 48-week data from the SUMMIT trial, released Feb 2026. Patients saw a 56% relative improvement in symptoms, with 86% of patients hitting clinically meaningful benchmarks.
7. Restaurant Brands International Inc. (NYSE:QSR)
Duquesne Capital’s Stake: $82 Million
Restaurant Brands International Inc. (NYSE:QSR) first appeared in the 13F portfolio of Duquesne Capital in the first quarter of 2015. This position comprised over 500,000 shares and was sold off by the next quarter. The stock then reappeared in the Duquesne portfolio in the second quarter of 2025. This holding comprised nearly 750,000 shares. In the third quarter of 2025, the fund upped this stake by over 50%, climbing share ownership to over 1.1 million. Filings for the fourth quarter of 2025 show that the fund has improved this holding by 7% more and owns more than 1.2 million shares in the firm.
In recent months, Restaurant Brands International Inc. (NYSE:QSR) has made an aggressive commitment to returning cash to shareholders. This is a major driver for hedge fund interest in the stock. In February 2026, RBI management officially announced that it was resuming buybacks with a $500 million target for 2026 alone. It also set a total capital return goal of $1.6 billion for the year, supported by a long-term target to increase the dividend payout ratio to 60%. The firm also announced a roadmap to achieve an investment-grade credit rating by 2028, which would lower interest expenses and boost net income.
6. BBB Foods Inc. (NYSE:TBBB)
Duquesne Capital’s Stake: $89 Million
BBB Foods Inc. (NYSE:TBBB) is a recent addition to the 13F portfolio of Duquesne Capital. The fund first disclosed a stake in the company in the second quarter of 2025. This position comprised over 360,000 shares. In the third quarter of 2025, the fund upped this holding by more than 220% and share ownership rose to nearly 1.2 million shares. Filings for the fourth quarter of 2025 show that the fund has added to the holding by over 125% and now owns nearly 2.7 million shares in the company.
Hedge funds are bullish on the long-term prospects of BBB Foods Inc. (NYSE:TBBB) despite short-term share price fluctuation. The core thesis is that the company is perfectly positioned to capture market share from traditional mom-and-pop stores in Mexico. In 2025, the company opened 574 net new stores, a 21% increase over the previous year. Hedge funds are betting that this aggressive footprint expansion will lead to massive operating leverage by 2027. Over 50% of sales for the company come from private-label brands. This allows BBB Foods to maintain high margins even while offering prices lower than major competitors like Walmart de México. Large-scale institutional investors have treated the March price dip as a buying opportunity, focusing on the 34% year-over-year revenue growth rather than the EPS miss.
While we acknowledge the potential of TBBB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TBBB and that has 100x upside potential, check out our report about the cheapest AI stock.
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